Boeing machinists voted against a new labor deal that included a 35% wage increase over four years, further extending a strike that has halted most of the company’s aircraft production in the Seattle area. The rejection comes at a challenging time for the company, which reported a $6 billion quarterly loss and warned of continued cash burn through 2025. New CEO Kelly Ortberg has emphasized the importance of reaching a deal with the machinists to address safety and quality issues at Boeing.
The strike, involving over 32,000 machinists, began on September 13 after a previous tentative deal calling for 25% raises was rejected. The latest proposal included a 35% wage increase, increased 401(k) contributions, a bonus, and other improvements. Workers have been seeking higher pay due to rising living costs in the Puget Sound area, but were disappointed that the new contract did not include a pension, which was lost in a previous agreement in 2014.
One of the key points in the negotiations was Boeing agreeing to build its next aircraft in the Pacific Northwest, as unionized workers were unhappy when production of the 787 Dreamliner was moved to a non-union factory in South Carolina. This labor dispute is the latest among a series of challenges Boeing has faced, including safety issues with its best-selling 737 Max series earlier this year. The strike began as Boeing was working to increase production of its aircraft models.
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